Commitee of MPs launch inquiry into energy network charges
THE ENERGY and Climate Change Committee yesterday launched a new inquiry into network costs, as the public furore into rising energy bills rumbles on.
The committee of MPs is assessing whether the regulator Ofgem is doing enough to ensure the costs of transporting and distributing energy stay low. Network costs make up around 23 per cent of a dual fuel – gas and electricity – bill, making it one of the key components that drives up prices, after higher wholesale costs and green levies.
Network charges fell by 50 per cent in the first 15 years after privatisation of the industry, but they have been rising again as new networks are built to replace old ones. “Questions remain on how transparently current and future network costs are determined and how effective Ofgem is at monitoring and scrutinising the charges and profits of network companies,” said the committee, which is inviting responses by Wednesday 2 April.
The new inquiry turns the spotlight away from the energy suppliers, who have taken a public battering over the past few months due to rising bills. The government has rolled back some green levies after pressure from the companies.